(Reuters) - Constellation Brands Inc (NYSE:STZ) forecast full-year profit above Wall Street estimates on Thursday, benefiting from price increases aimed at combating elevated costs and strong demand for its high-end beer brands.
Like other spirit makers, the company has been raising prices of its beer, wine and spirits to shield its margins from soaring costs of packaging, raw materials, logistics and labor.
Even as inflation impacted spending habits, Constellation said its consumers stuck to its premium beer brands including Modelo Especial and Corona Extra. Demand for its premium and fine wine has also remained robust.
Analysts have said that the company's beer segment looks set for a strong fiscal 2024 with price hikes and new product launches, including Modelo Oro beer in the United States despite an uncertain consumer environment.
Constellation said it expected full-year adjusted profit per share between $11.70 and $12.00, compared with analysts' average estimate of $11.68 per share, according to Refinitiv data.
The company's shares rose more than 1% to $224 before the bell.
Constellation also posted adjusted earnings of $1.98 per share for the quarter ended Feb. 28, topping analysts' expectations of $1.82 per share.
Known for brands such as Kim Crawford and SVEDKA Vodka, Constellation, however, said revenue fell 5% to about $2.0 billion, missing analysts' average estimate of $2.02 billion.